Identify the features of indifference curve ?
(A) An indifference curve reflects same utility level with different combinations.
(B) Indifference curve are downward sloping from right to left.
(C) Higher indifference curve gives greater level of utility.
(D) Two indifference curve never intersect each other.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (C) and (D) only
A consumer choosing between two goods, say bananas and mangoes, can be equally happy with many different bundles: a few bananas with many mangoes, or many bananas with a few mangoes. The curve joining all the bundles that give the same satisfaction is an indifference curve; along it utility stays the same. A family of such curves, one for each level of satisfaction, is an indifference map.
The features of these curves follow from one assumption, monotonic preferences: of two bundles, the consumer prefers the one with more of at least one good and no less of the other.
(A) An indifference curve reflects same utility level with different combinations. Correct. Every point on the curve is a different combination of the two goods, and the consumer is indifferent among them because each gives the same utility.
(B) Indifference curve are downward sloping from right to left. Incorrect. An indifference curve slopes downwards from left to right. To have more bananas the consumer must give up some mangoes, so as one good increases along the curve the other decreases.
(C) Higher indifference curve gives greater level of utility. Correct. A higher curve has bundles with more of one good, or of both, so it stands for a higher level of satisfaction.
(D) Two indifference curve never intersect each other. Correct. At the point of intersection the same bundle would give two different levels of satisfaction, which is a contradiction.
NCERT (2025-26): “Indifference Map … The consumer’s preferences over all the bundles can be represented by a family of indifference curves …. This is called an indifference map of the consumer. All points on an indifference curve represent bundles which are considered indifferent by the consumer.… Features of Indifference Curve 1. Indifference curve slopes downwards from left to right: An indifference curve slopes downwards from left to right, which means that in order to have more of bananas, the consumer has to forego some mangoes.… 2.Higher indifference curve gives greater level of utility: As long as marginal utility of a commodity is positive, an individual will always prefer more of that commodity, as more of the commodity will increase the level of satisfaction.… …3.Two indifference curves never intersect each other: Two indifference curves intersecting each other will lead to conflicting results.…” |